Port of Corpus Christi officials celebrate completion of Ship Channel Improvement Project

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4 days ago

Large ships passed by the Port of Corpus Christi on June 2 as federal, state and local leaders who gathered there to celebrate the forthcoming completion of the Ship Channel Improvement Project offered them a friendly wave.
The navigational project increases the depth of the ship channel from 47 feet to 54 feet and widens it from 400 feet to 530 feet to allow large draft vessels to navigate the passage. It also adds barge shelves to the outside of the channel to provide for a safer trip for barges and ships.
Port officials say it will expand capacity to export crude oil, liquefied natural gas and other commodities at a less expensive rate by allowing larger vessels such as Very Large Crude Carriers to move through the channel. The expansion will result in fewer ships transporting more cargo, saving about $200 million in annual transportation costs, said Kent Britton, the Port of Corpus Christi CEO.
'This is probably the most significant thing the port has done,' he said. 'When I got here, we'd started saying we were the energy port of America. I was new to the port and new to the port industry and thought that was a pretty bold statement.
'When you see what's happened in the succeeding eight years, it truly is humbling, and it's humbling to be able to lead this organization,' he said.
The ceremony on June 2 marked the culmination of about 35 years' effort on the major infrastructure project, which began when the U.S. Congress first authorized a study to look at the possibility of dredging the ship channel. Congress authorized the project some 17 years later at the proposed depth.
The port obtained first-dollar funding for the project in 2018, three years after Congress passed legislation lifting a ban on crude oil exports.
Phase 1 entailed digging the channel from the Gulf of Mexico, since renamed by the U.S. government as Gulf of America, to Harbor Island. With funding for Phase 2, the port continued to dredge from Harbor Island to west of the La Quinta Junction, followed by Phase 3, which dredged the channel west of the La Quinta junction to Chemical TB.
The latest phase deepens and widens the channel from Chemical TB to Viola TB and is expected to end in the second quarter of 2025, although additional maintenance and dredging will follow to ensure there is no shoaling and to ensure the entire channel has been deepened to 54 feet, according to port officials.
For the U.S. Army Corps of Engineers, which entered into a project partnership agreement with the Port of Corpus Christi in 2017 to share project costs, the ceremony was an opportunity to witness the result of years of partnerships with stakeholders who helped design, engineer and fund the channel project.
The corps contributed about $450 million of the $625 million investment, and the port made a $180 million capital contribution, port officials said.
Under the leadership of the port commission, the port has invested about $1 billion in the last 10 years to build new infrastructure to benefit the region and open up the port for customers.
The ceremony on June 2 is the second event that the port has organized in the last several months in anticipation of the completion of the Ship Channel Improvement Project.
Port officials and U.S. Sen. John Cornyn attended a town hall in late March to discuss the importance of the project and the role of its export capacity in strengthening trade and American energy dominance.
With the lift of the ban on crude oil exports, the port began shipping large volumes of oil through the channel, advancing it from exporting less than 100,000 barrels per day in the first year after the ban was lifted to 2.4 million barrels last year.
The port's proximity to Eagle Ford Shale and the Permian Basin, major oil production fields, has helped attract $65 billion in investments to the Coastal Bend over the last decade, according to a news release issued by the Port of Corpus Christi. Port customers and port-related activities generate about 95,000 jobs, the news release said.
During the ceremony on June 2, Omar Garcia, the chief external affairs officer for the Port of Corpus Christi, said the new 54-foot depth is already providing opportunities for economic growth, which translates into more community investments and new jobs.
'When I arrived at the Port of Corpus Christi in the fall of 2018, this gateway was the nation's fourth-largest port in total waterborne tonnage,' he said.
Today, the port is the largest crude oil exporter in the U.S. and the third-largest in the world, with only Saudi Arabia and Iraq exporting more crude oil, he said.
With the project's fourth phase nearing conclusion, port officials and city leaders thanked current and past commissioners for their efforts to secure project funding by traveling to Washington, D.C., to meet with representatives of the U.S. Army Corps of Engineers and the congressional budget office.
He thanked Solomon P. Ortiz, a congressman representing Corpus Christi in 1990, for persuading Congress to authorize the feasibility study through the Water Resources Development Act.
U.S. Rep. Henry Cuellar, a Democrat serving on the House Appropriations Committee, spoke at the ceremony about working with U.S. Rep. Michael Cloud, a Republican on the committee, to obtain $157 million in fiscal year 2023 to launch and finish the final phase of the project.
'From energy exports to military activity, from small businesses to global markets, this port connects South Texas to the rest of the world,' he said. 'With the $625 million channel improvement project completed, we are ready to lead the world into the next generation of trade.'
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This article originally appeared on Corpus Christi Caller Times: Port of Corpus Christi officials celebrate channel deepening project